Question

Huskies#1, Inc., recorded the following profit figures in 2020-2022.

a.	Compute the gross profit margin for 2020-2022.
b.	Describe the trend in profitability and pinpoint its causes.

Show all your work.

	2022	2021	2020
Net sales	$30,500	$25,600	$22,900
Costs and expenses:
Cost of products sold	$12,600	$10,300	$ 8,350
Selling	7,875	5,025	4,580
General	2,950	2,325	2,150
Research and development	4,100	3,190	2,840
	$27,525	$20,840	$17,920
Operating income	$ 2,975	$ 4,760	$ 4,980
Other income (expense)	525	(300)	(400)
Earnings before tax	$ 3,500	$ 4,460	$ 4,580
Income tax	1,480	1,990	2,100
Net income	$ 2,020	$ 2,470	$ 2,480

Answer 1

. 31 2020 2021 2022 Net sales $ 22,900 $ 25,600 $10,300 $30,500 $ 12, 600 $ 8350 $1 1900 den: Cost of goods sold Gross profit margin $ 14550 $ 15,300 b) uis The Net Income has been declining from 2000 to 2022 whereas the gross projet has been increasing over this time period. and if Я go more speutic operating Income has been declining and it matches the trend of net income. It points out the operating expen have been increasing largely from selling expense to general expenses to R & D expenses. So the main cause is operating expenses which required to be slashed greatly to increase the income an